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HCMC Tax Department: Rising revenue and reducing loss of trillions of VND due to examination and inspections

Summary

Updated on : 25-07-2017

VCN – An additional revenue of more than 2 billion VND and a reduced loss of nearly 5,800 billion VND in enterprises through inspections and examinations are impressive figures in the anti-loss of State revenues of the Ho Chi Minh Tax Department in the first six months of 2017.

Revenue rose more than 2,000 billion VND

According to Le Duy Minh, Deputy Director of the HCMC Tax Department, in 2017, the Department has enhanced the revenue management and anti-loss of State revenues in the city by key measures and developed examinations and inspections special subjects. Therefore, although the number of enterprises which must be examined and inspected did not increase, the collected tax arrears through this work of the Department in the first six months of 2017 rose by more than 57%.

According to the HCMC Tax Department, in the first six months of 2017, the Department has examined and inspected 8,728 enterprises, up 2% over the same period and collected tax arrears and fines of 2,041.83 billion VND, up 57.5% over the same period in 2016.

In addition, through examinations and inspections, the Tax authority has reduced a loss of 5,764.8 billion VND at enterprises; reduced a deductible value added tax of 216.1 billion VND and contributed to the state budget 1,036.7 billion VND, up 98.6% over the same period and equal to 50.77% of the total tax arrears and fines.

Of which, inspecting at tax authorities 69,979 tax declaration dossiers, up 22% over the same period last year and collecting an additional and imposed tax amount of 18.7 billion VND. Inspecting at the enterprises 8052 times, collecting tax arrears and fines of 794.5 billion VND and reducing a loss of 2,667.2 billion VND and a deductible VAT of 161.5 billion VND

The number of dossiers inspected in the first 6 months of 2017 is 676 dossiers, collecting tax arrears and fines of 1,247.33 billion VND, reducing a loss of 397.9 billion VND and a deductible VAT of 54.6 billion VND. Thus, the tax inspections and examinations in the first 6 months of 2017 do not increase much in number but increased much in tax arrears and fines over the same period last year.

This result is mainly due to the drastic guidance on examinations and inspections to prevent loss of tax revenues, especially the examining and inspecting special subjects in the fields of high risks of the HCMC Tax Department such as: the subjects on transfer pricing control for enterprises with associated transactions (mainly FDI enterprises); transfer pricing control in import-export; Business administration of the high-end catering services and e-commerce business management. In particular, reviewing and gathering information and informing in the document to online business organizations and individuals (Facebook, Youtube, Zalo ...) to encourage and guide taxpayers to well observe the tax law.

Examinations and inspections must be right

At conference to summarize the performance of the first six months and deploy the tasks for the last six months of 2017 of the HCMC Tax Department last week, leaders of the Ministry of Finance and leaders of HCMC People's Committee has directed the tax authorities to strictly implement the Prime Minister's guidance on supporting enterprises and not inspecting and examining enterprises rashly. Vice Chairman of HCMC People's Committee Tran Vinh Tuyen said that the inspections and examinations must ensure the most harmony and be right so that the Department must closely monitor the situation of enterprises.

In order to inspect and examine enterprises rightly, Deputy Minister of Finance Do Hoang Anh Tuan requested the HCMC Tax Department to focus on implementing measures to develop services for the business community, ensuring the sustainable revenues. In addition, the HCMC Department of Taxation needs to improve the quality of inspections and examinations by developing a database of 180,000 operating enterprises in the area to implement risk management.

In particular, researching and analyzing information to select 10-15% of enterprises with signs of violations to inspect. “You should spend two-thirds of the time to research dossiers at the tax authorities and one-third to inspect at enterprises to avoid annoying and prolonging the inspections time at enterprises” -Deputy Minister Do Hoang Anh Tuan suggested.

According to Mr. Tuan, the inspections and examinations are one of the key tasks of the Taxation. Thanks to the inspections and examinations, the HCMC Tax Department has asked enterprises to pay more than 2,000 billion VND in the past six months, enterprises were subject to tax arrears accepted the Department’s decisions and the complaints rate was low, only about 4%. At the same time, through the inspections and examinations, the tax authorities have reduced losses of thousands of billion for enterprises, created revenues for the last six months and for the coming years. "The Ministry of Finance desires that HCMC Tax Department will collect 250 trillion VND in 2017, up 12 trillion VND compared to its assigned target," he noted.

By Le Thu/ Huyen Trang